Alexander Ali Baba, 66, of Morden, London, was sentenced to 12 months in prison at Kingston upon Thames Crown Court on Friday, July 3, after pleading guilty to two counts of illegal money lending. Between January 2020 and October 2025, Baba operated a predatory lending business from his home and grocery store, lending more than £4.7 million and demanding over £6.5 million in repayments.
Details of the Scheme
Prosecutor Ben Irwin, representing the Illegal Money Lending Team (IMLT), told the court that Baba’s operation involved high interest rates, often around 100%, and loans ranging from £500 to £3,000. Monthly instalments were steep, with penalties for late payments—one borrower faced a £140 penalty per missed payment, while another had additional charges of £205 added to monthly instalments. No formal contracts were provided; records were kept in handwritten books, envelopes, and ledgers, with communication via WhatsApp.
Investigation and Evidence
In October 2025, a raid on Baba’s home and grocery store uncovered over £155,000 in cash, primarily in white envelopes. IMLT investigators found 14 bank accounts with extensive transactions marked as ‘loan’, ‘owe’, and ‘penalty fee’. Analysis revealed approximately 2,275 loans totalling over £4.7 million, with expected repayments of around £6.6 million. Interest rates varied from 30% to over 100%.
Impact on Borrowers
One borrower described feeling intimidated and threatened when unable to pay. Recorder William Featherby KC called the offence “very unpleasant” and “predatory upon vulnerable, financially poor people.” Dave Benbow, head of the IMLT, stated: “This case involved huge sums of money and this defendant was well known in the community for lending money. This is how many illegal lenders operate, they pretend they are offering a service and a favour, in fact they are exploiting the vulnerable and ripping people off.”
Sentencing and Warning
Baba was jailed for 12 months. The IMLT, a national team backed by Birmingham City Council, condemned the crimes, with Benbow adding: “We hope this sentence sends a message to other illegal lenders who operate in this way that they are not above the law. And we would urge anyone who thinks they may have borrowed from an illegal lender like this to contact us for support.”
